A Corporate Perspective on Climate Change Tom Jacob DuPont Climate Change and Business Opportunities Mexico City 18 October 1999

DuPont The Miracles of Science F Food & Nutrition F Health Care F Agriculture F Apparel F Construction F Electronics F Transportation

DuPont Core Values F Safety, ethics, respect –200 year heritage F Environment –Evolving in our lifetimes –Becoming global expectation of responsible corporate citizenship

Environment F Human Activity --> Environmental Impact F The need: more sustainable practices –Reducing the imprint of our actions –The goal is zero

DuPont And Climate Change F Shaped by active participation in global scientific effort (IPCC) –Involvement began with ozone depletion F Concluded in 1991 that there is cause for concern –Analyzed DuPont emissions profile –Established goals for 1990s to: u Reduce global GHG emissions 50% u Increase energy efficiency by 15%

How Have We Done? F Greenhouse gas emissions from operations: –45% global reduction u Driven by non-CO2 gases F Energy efficiency: –Energy consumption flat, despite 36% increase in production volume u 1/2 gains from efficiency/powerhouse u 1/2 gains from process/product mix

Howd We Do That? F Nitrous oxide abatement in adipic acid process –Multi-company consortium –Retrofits: Texas, Canada, UK –New facility: Singapore F HFC23 abatement in fluorochemical process –Retrofits scheduled in WV, KY; –Done in Netherlands

Greenhouse Gas Reduction Cost Marginal Cost of Greenhouse Gas Reduction Projects ** ** ** Priority For Investment

100% 20%40%60%80%100% 80% 60% 40% 20% Environmental Benefit Cost The Rule You accomplish 80% of the environmental benefit with the first 20% of costs.

DuPont Early Reductions % 90 0 Environmental Benefit BAU Impact of DuPont Early Actions

Governmental Context of Climate Change F Framework convention on climate change –Signed at Rio Conference u Negotiated/signed by Bush Administration u Ratified by Congress –Established structure for long term climate change effort –Since ratified by 170 countries F US programs followed in 93 –Climate Wise/Climate Challenge

Framework Convention Objective F Two concerns: –Concentration levels and timing u stabilization of greenhouse gas concentrations... that would prevent dangerous anthropogenic interference u time-frame sufficient to allow ecosystems to adapt naturally

Recent Political Context F Forging a kick-start –Focus on failure to return to 90 emission levels –Political agenda captured by EUs aggressive targets/timetables F Kyoto Protocol approved –Market mechanisms, but aggressive target & timetable

A LONG TERM ISSUE Concentration ( ppmv ) Stabilization at: X Pre- Industrial Potential Concentration Targets Total Emissions (CtC/yr) Toward Stabilization at: Developing country emissions Business as usual Related Emission Pathways Total current emissions

The Longer-Term Challenge F Continued emissions in developed nations F Growing Population --> Growing Emissions u China u India u Other developing countries F Long-term Need –Reduce global emissions, while strengthening global economy F Increasing pressure on emissions!!

Positioning DuPont For That Future F Get ahead of the curve –Ensure that DuPont businesses are positioned to compete globally in a market place increasingly dependant upon getting more from less F Position our businesses to be part of the solution –Gain the insight, and experience to help our industries and our customers prosper in that market place

Goals For The Coming Decade F Reduce global carbon equivalent emissions by 65% using 1990 as a base year u Kyoto basket F Hold total energy use flat using 1990 as a base year u More knowledge-intensive products F Source 10% of our global energy in 2010 from renewable resources u Heavily dependent upon external forces

Bye, Now...